Hedging USD CHF with forex trading on IB

[cyberhigh]

Hi guys

Did anyone ever try this here on IB?

Seems one can attach an FX order to an equity trade on IB.

If it is simple, could protect nicely against the USD weakness in the future.

[cyberhigh]

Hi everyone - wanted to bring this up again - how are you, if at all, protecting yourselves against a potentially accelerated decline of usd / chf with trump in the oval? I was thinking of some fx hedging again. I am mostly holding VT, and am aware that VT is just traded in USD, but still.

[cubanpete_the_swiss]

I think there are other threads where this was discussed in detail.

TLDR: everything carries currency risk, just look at the things in your room and tell me that none of it has any part coming from another currency zone. Stocks move by factor of thousands depending on the time frame compared with Forex. Protecting against Forex risks does not make sense in the long term, is either very expensive or adds risk. And don’t forget the interest difference; if you use that IB feature you’ll have debt in USD and cash in CHF… you pay the interest difference plus the IB markup.

[Helix]

@cyberhigh

wanted to bring this up again

Please read:

The trading denomination is irrelevant for all assets (and hedging)

tl;dr: There is no important relationship between an asset (e.g. gold) and its denomination (e.g. CHF). Listen to reason Reason 1: The asset you hold If you buy 1 kg of gold, you hold… 1 kg of gold. It logically has the same value regardless of what currency (CHF, EUR, USD, etc.) you bought it with. Reason 2: Arbitrage Let’s say you could get more value by buying or selling your gold in one currency than another. For example: Asset Denomination Price Gold CHF 10 Gold EUR 20 CHF EU…